Real passive income opportunities. They are out there! I’ve taken advantage of some of them and I’m going to share with you some of them that I have and have not experienced myself. Passive income is money that pays you regardless of how you spend your time, essentially decoupling your income away from your time so you can spend your time doing what you want and be covered financially. My end goal with this video is for you to walk away after watching this video to its completion with some new ideas on how you can see yourself creating your first stream of passive income, or if you’ve already got some passive income, then my goal is for you to gain some new ideas on how you can create more passive income. So let’s get started!
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A real passive income opportunity requires some up front work before it can even have the potential to pay you for the rest of your life. This is where most people will lose interest because let’s face it, we are culturally conditioned to automatically get paid based on the time we’ve put into our work. Show up get paid. Show up get paid. Show up get paid. The proverbial hamster you’ll never get ahead. You’ll never have freedom of your time this way. It takes time to undo a life time of bad conditioning. But if you’re willing to undo that bad conditioning in your mind you can re train your brain to show up and don’t get paid. Show up and still don’t get paid. Show up get paid. Don’t show up, still get paid. Wow what happened? Passive money is starting to kick in. It’s slow at first but keep showing up! Commit to that up front investment of your time to keep building up your passive income to the point of it covering ALL of your expenses both necessity and luxury. Maybe at that point you can pull back half throttle. Maybe take a couple weeks off to travel and vacation and watch how you’re still getting paid even while vacationing and rejuvenating.
Now that you are prepped and well aware that this takes consistent action over a period of time upfront before you’re likely to see a dime of passive income, you are ready to get started on your journey of attaining time freedom that only passive income can give you.
You could buy a traditional business like a microsoft or an amazon that’s already set up, has established business, and is for sale provided you have millions or billions of dollars to make the purchase. Obviously this is something only available to a very small percentile of the population so this is not going to work as a starting place for almost all of us so I won’t spend any more time on that in this video, except to say there is no reason you can’t start where you’re at no matter what and build from there to the point of having the option of purchasing a business that already has the positive passive cash-flow built in for you. When you do build and build and you get to that point where you can buy an established profitable business, if you want to keep the income passive, hire managers to run the business for you. You can have the vision for what you want to business to be and hire managers to carry out and execute that vision for you.
So moving right along..
Royalty checks! That’s passive income. For this you’d have to be super famous like michael jordan, madonna, an ex president, everybody knows your name and already spends money on through other merchandise and things like that. You could write a book and give distribution rights to various entities who would agree to give you a certain cut per each book that is sold. Effectively others would be selling your book for you and just sending you royalty checks making this a passive form of income. Since this is not available for the overwhelming majority of the population let’s move on, but still, let this idea of royalties soak into your brain because as you build your passive income up from zero to however big you’d like, you will gain new options that may not be available yet to you right now.
Real estate! specifically investor and owner of rental properties. Now this is one that I personally got into! I was spring boarded into being able to do real estate from another passive income opportunity that I will get into next. Real estate is available to far more people that royalties or big business purchase, but still not available for a large plurality of the country who lives paycheck to paycheck as it is. Depending on that area of the country you live in a down payment just to get your foot in the door on your first property could range anywhere from twenty thousand dollars to a million dollars. Let’s pick a realistic average just for this example, say fifty thousand dollar down payment on a property. The minimum down payment on a non owner occupied property is twenty five percent, with seventy five percent being financed. A two hundred thousand dollar purchase price would require a fifty thousand dollar down payment. The property is going to come with operational costs as well as mortgage principal and interest. You also have property taxes, insurance, maintenance, cleaning, repairs, it’s a huge expense to own a rental property. Your net profit or loss after property income minus expenses is going to roughly one hundred fifty to two hundred dollars per month of income on a fifty thousand dollar down payment. Just to get your foot in the door with a fifty thousand dollar down payment is going to give you a return of one hundred and fifty to two hundred dollars per month! You need to keep buying rental properties to keep increasing your passive income . For most people this would take so many years to do that it wouldn’t be worth it because you’d probably have passed on from old age before you became financially free with your new found time freedom anyway. All you have to do to make rental property income passive is hire a great property manager. I hired a management company. They are AWESOME! I’ve never met any of my tenants, my management company literally does everything for me so I have all my time to myself to do other things.
Youtube creator! This is certainly available to everyone because it does not cost any money. But, where it’s free financially, it’s most likely going to have to be made up for by taking you more time to do with more consistency. But it’s worth it! This is another passive income stream I am enjoying and is a recent development for me. I just love getting passive money from something that I really love doing. For a while I did not even know youtube was paying me because I was creating all these videos out of an innate joy I have for creating them. To make passive money with youtube first you have to create a google adsense account, reach a thousand subscribers, and have a minimum total of four thousand view time hours across your whole channel. Once you’ve met this criteria, you are eligible to start monetizing your videos.
Network Marketing! This is another passive income opportunity I have experience in and this is actually my first passive income opportunity. Staying true to form of passive income a network marketing business takes an upfront investment of time, and unlike being a youtube creator this does take a very tiny upfront financial investment. The cost is so minimal most if not all people can do this one. First you’d want to find a good product and a good company that you can get behind and support. From there it’s just a matter of a small financial investment and a true love for learning something new. Unlike traditional business, network marketing is far less of a financial investment with an enormous upside potential. Best risk to reward ratio is a hallmark of a good network marketing opportunity. Because network marketing offers both passive and residual money simultaneously, you have the potential of explosive growth here. Once you’ve embraced learning and doing something new on a daily bases to build your network marketing business you will emerge at some future point with passive and residual money from your new network marketing business.
Once I get my network marketing business going and I started making really nice money I saved every penny of it that I could and eventually used that first passive income stream to buy another passive income stream, that is, my first rental property! And my second one.. And third.. And so on! The network marketing gig was the key ingredient to making it all work. For me here is how this all relates to each other. It’s important you begin to visualize how this could positively affect you. First I got the network marketing business going because I couldn’t afford anything else at the time so I got started where I was at with my life and decided early on that I would keep building and growing as a person to be able to do all this stuff. Once I began doing well financially in the first business I decided I would put as much of that network marketing income toward my new rental property business. Now I have two passive income streams, one feeding the other, and eventually a third I will talk about now. My youtube videos don’t cost any money unless you don’t already have a good camera and a tripod then you’d need to invest in a good camera and tripod. It does take a lot of time to get it going. If you don’t have freedom of time it’s going to make it take so much longer! My first two passive income streams give me freedom of time. The network marketing business by itself gave me freedom of time so I just use as much of that money as I can, after affording all my living and luxury expenses, to effectively buy more passive income with my rental property business. So after I earned my freedom of time I started taking youtube very seriously and dedicating my free time toward that. Through lots of embracing the new learning of how to be a great youtube creator I create youtube videos that hopefully people will want to watch. When I put a new youtube video on my channel, and if it does well, that one video will continue to pay me passive money for a long time into the future. Each youtube video that I put onto my channel has the POSSIBILITY of doing well and continuously paying me long after I created that particular video only once. The more successful youtube videos I put onto my channel the more I add to my passive income from youtube. It might take me a lot of videos til I create that once and a while video that does exceptionally well, but each time I create a new video that does exceptionally well it’s just one effort that pays me potentially for the rest of my life even if I never make another youtube video again. I will keep making more youtube videos about matters I love talking about anyway, and once and a while I will have a great performing video that adds to my passive income.
So from my example I hope you can see how everything relates to everything. I hope you made the note about how I got started with little money in the first passive income stream and built my way up step by step from there. Truth be told I actually started with ZERO money. I put that initial investment on my credit card then got myself to work immediately so I’d be able to pay off that small credit card charge next month. I never missed a credit card payment! I hope more than anything you’ve got some ideas on how you can get started from where ever your starting point is. Getting started so you can have that initial experience is going to be so valuable for you in terms of the feedback that only experience can provide for you. Visualize how after you get your first passive income stream going, how you can use that to spring board you into another passive income opportunity spring boarded by the first one, and keep building step by step from their.
I hope you enjoyed this video and if you did please ravage that ravishing like button, subscribe, and hit the bell because that helps me out. Also I would love to know if you already do or do not have any passive income in the comments section!
I will leave links to helpful resources in the description area of this video.
Take care, I will be creating my next video very, very soon for you.
-Tom
P.s. If you’d like to work with me I don’t charge any fees I’m not going to sell you something you don’t want or need: http://workwithtom.fireyourboss.xyz
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